Vietnamese gold demand shrinks in Q2

By VNA August 4, 2023 | 03:45 am PT

Gold jewelry on display at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran

Demand for gold in Vietnam shrank 9% in the second quarter this year compared to the same period last year, according to the World Gold Council’s latest report.

Vietnamese purchased 12.7 tonnes of gold in Q2, down 1.3 tonnes year-on-year.

Vietnam’s economy experienced a sluggish growth in the first two quarters of this year, affecting local market sentiment and jewelry demand.

Local demand for gold bars and coins dropped by 5% year-on-year from 9.6 tonnes in Q2 last year to 9.1 tonnes in the same period this year.

Meanwhile, demand for gold jewelry lowered from 4.5 tonnes to 3.7 tonnes.

Shaokai Fan, Head of Asia-Pacific (exclude China) and Global Head of Central Banks at the World Gold Council, said the Q2 downward trend in Vietnam was like those in other markets in the ASEAN region.

The demand for gold bars and coins was also limited due to low liquidity, affected by the downturn of the stock market and real estate, he added.